- 14-Sep-2025
- Elder & Estate Planning law
The rapid growth of e-commerce has led to an increase in online shopping, where products are often sold by third-party sellers on various platforms. While consumers are protected under the Consumer Protection Act, a key question remains: to what extent are e-commerce platforms liable for defective products sold by these third-party sellers? The Consumer Protection (E-Commerce) Rules, 2020 aim to clarify the legal responsibilities of e-commerce platforms in such situations.
In India, most e-commerce platforms operate on a marketplace model, where they act as intermediaries between buyers and third-party sellers. While the platform itself does not directly sell products, it still holds responsibility in certain cases.
E-commerce platforms are legally responsible for ensuring that the products listed on their platform meet the minimum quality standards and consumer safety regulations. If a consumer receives a faulty or substandard product, the platform can be held accountable if the product fails to meet the required standards.
The platform is also responsible for providing a grievance redressal mechanism and must take action if consumers face issues such as defective products, late delivery, or deceptive marketing.
While the e-commerce platform acts as a facilitator, the third-party seller is primarily responsible for the product quality. However, e-commerce platforms are required to verify and monitor sellers to ensure they comply with applicable laws and regulations.
Platforms are held jointly liable if they fail to take action against sellers offering defective products or violating the law. This includes taking appropriate steps for refunds or replacements when consumers receive faulty products.
The platform must also ensure that sellers provide accurate product descriptions, and that they honor return and refund policies as stipulated under the Consumer Protection (E-Commerce) Rules, 2020.
Under the Consumer Protection Act and the E-Commerce Rules, consumers have the right to demand a refund, replacement, or repair for defective products. If the e-commerce platform fails to take responsibility, it can face legal consequences.
The e-commerce platform is required to have clear refund and return policies for products that are faulty. If a product is defective, the consumer can either return it for a full refund or request a replacement, depending on the platform’s policies. If the platform fails to facilitate this, it could be penalized.
E-commerce platforms must disclose relevant details about the products, including warranties and return policies, to avoid misleading consumers. Platforms are required to display product information that accurately reflects the condition, specifications, and quality of the item.
If a defective product is delivered, the platform must provide transparent communication on how to return the product and obtain a refund, and must ensure that sellers comply with these terms.
If a defective product is sold, the consumer can file a complaint with the National Consumer Helpline, or take the issue to the Consumer Forum. The platform is legally obligated to cooperate in resolving the issue, and if the platform does not fulfill its responsibilities, it may face penalties under the Consumer Protection Act, 2019.
The consumer can approach the District Consumer Disputes Redressal Commission for compensation or a refund if the matter is not resolved within the stipulated timeframe (usually 30 days).
If an e-commerce platform does not fulfill its obligations regarding faulty products, it can face penalties, including fines or removal from the market, as stipulated under the Consumer Protection (E-Commerce) Rules, 2020.
Platforms that allow the sale of counterfeit or unsafe products can also face action from regulatory bodies like the Food and Drug Administration (FDA) or Bureau of Indian Standards (BIS), depending on the nature of the product.
All e-commerce platforms must have an effective grievance redressal system in place to address consumer complaints. Consumers who receive faulty products must be able to easily file complaints and track the resolution process.
The platform must ensure that the complaint is addressed within a specified period (usually 30 days). Failure to resolve the issue can result in penalties.
E-commerce platforms are responsible for ensuring that the sellers on their platform adhere to consumer protection norms, including providing genuine products and offering proper customer support.
If a consumer reports a defective product, the platform is required to investigate and ensure that the seller resolves the issue, whether by issuing a refund, replacement, or repair.
If a product is found to be unsafe or hazardous (for example, defective electronics, faulty appliances, or food items with harmful ingredients), the platform may be held liable for distributing such products, especially if the product violates safety regulations or causes harm.
Consumers are protected under the Consumer Protection Act, which gives them the right to file a complaint if they receive faulty or substandard products. E-commerce platforms must comply with the terms of the Act, and failure to do so can result in penalties.
If the consumer has incurred a loss due to the faulty product (e.g., financial loss, injury, or property damage), they can seek compensation from both the platform and the seller under the Consumer Protection Act.
If the grievance is not satisfactorily resolved, consumers can escalate the issue to Consumer Forums for further legal action and seek a refund, compensation, or a replacement.
Scenario: A consumer buys a blender from an online platform, but the product malfunctions within a week of use.
Contact the Platform’s Customer Support: The consumer should immediately contact customer service and report the defect.
Request a Refund or Replacement: If the platform has a return/refund policy, the consumer should request a replacement or refund for the defective blender.
File a Complaint: If the issue is not resolved within the stipulated period (usually 30 days), the consumer can escalate the complaint to the National Consumer Helpline or file a case with the District Consumer Forum for further legal recourse.
Answer By Law4u Team
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